ASEAN vows tariff cut on agricultural goods

ASEAN vows tariff cut on agricultural goods

MANILA (AFP): ASEAN members pledged Tuesday to speed up import
tariff cuts on sensitive products traded within the region,
including key agricultural commodities to help rebuild shattered
confidence on crisis-hit Asia.

Indonesia, Malaysia and Myanmar among themselves agreed to
include a total of 61 "sensitive unprocessed agricultural
products" to a list subject to tariff cuts after next year, while
other ASEAN members also volunteered products previously exempt
from liberalization.

Full direct benefits from these commitments, made under their
vision of an ASEAN Free Trade Area (AFTA) by 2003, are not
expected within the short term for member countries, some of
which are now deep into recession.

But Thai Deputy Premier Supachai Panitchpakdi told a joint
news conference that the commitments would have "sent a correct
signal to the world that we are moving ahead" with economic
liberalization despite the difficulties engendered by the
currency crisis.

"ASEAN means business," Singapore Trade Minister Lee Yock Suan
said, adding that commitments to bring down trade barriers, at
least amongst themselves, would lead to the "restoration of
confidence" in an export-driven region which has been walloped by
a massive outflow of foreign capital.

ASEAN, which also includes Brunei, Laos, the Philippines and
Vietnam, pledged to bring down tariff levels to zero for about
1,500 product lines by 2000, but the ministers would not say if
any of these are traded in bulk within ASEAN.

Indonesian Trade Minister Rahardi Ramelan said the 19 imports
it previously considered "highly sensitive" or "sensitive"
include sugar, in which tariff cuts would start in 2005, as well
as rice, which will enjoy zero tariff by 2010.

Malaysia committed 22 unprocessed agricultural products for
five to zero percent tariff rates by 2003, while Myanmar, a less
developed country, pledged to liberalize agricultural commodities
starting 2003, three years ahead of schedule.

Brunei, Laos, Singapore, Thailand and Vietnam all committed
products previously exempt from liberalization for tariff cuts,
while the Philippines said 251 items, including certain products
not previously covered by tariff cuts until 2000 would now be
"accelerated."

The Philippines' assistant trade secretary, Edsel Custodio,
said "most" of the products traded in bulk within ASEAN fall
under the "unprocessed agricultural products category."

Intra-ASEAN trade totaled US$86.25 billion in 1997, up 4.65
percent from the previous year. Intra-ASEAN trade comprised 24.5
percent of all ASEAN exports and 18.4 percent of all ASEAN
imports in calendar 1997.

ASEAN Secretary-General Rodolfo Severino said that with the
fresh commitments made in Manila, 84.8 percent of all products
traded within ASEAN, covering more than 46,000 tariff lines, will
now be included for liberalization.

ASEAN trade ministers and senior officials made the
commitments at an AFTA council meeting here on the eve of two
days of talks among ASEAN economic ministers.

ASEAN senior officials began preparatory meetings here Monday
with the stated aim of coming up with "bold solutions" to the
crisis, which, except for the Philippines and Vietnam, trimmed
annual export growth to single digits.

The AFTA council said in a joint statement that tariff cuts
would "enhance economic integration and strengthen resilience
towards such external volatility."

Increased regional trade would likewise "help overcome the
negative impact of unprecedented currency devaluation of ASEAN
countries," it added.